Correlation Between Fidelity Emerging and Janus Asia
Can any of the company-specific risk be diversified away by investing in both Fidelity Emerging and Janus Asia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fidelity Emerging and Janus Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Emerging Markets and Janus Asia Equity, you can compare the effects of market volatilities on Fidelity Emerging and Janus Asia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fidelity Emerging with a short position of Janus Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Emerging and Janus Asia.
Diversification Opportunities for Fidelity Emerging and Janus Asia
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Janus is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Emerging Markets and Janus Asia Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Asia Equity and Fidelity Emerging is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fidelity Emerging Markets are associated (or correlated) with Janus Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Asia Equity has no effect on the direction of Fidelity Emerging i.e., Fidelity Emerging and Janus Asia go up and down completely randomly.
Pair Corralation between Fidelity Emerging and Janus Asia
If you would invest 1,007 in Janus Asia Equity on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Janus Asia Equity or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fidelity Emerging Markets vs. Janus Asia Equity
Performance |
| Timeline |
| Fidelity Emerging Markets |
| Janus Asia Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidelity Emerging and Janus Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Emerging and Janus Asia
The main advantage of trading using opposite Fidelity Emerging and Janus Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Emerging position performs unexpectedly, Janus Asia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Janus Asia will offset losses from the drop in Janus Asia's long position.| Fidelity Emerging vs. Fidelity Global Equity | Fidelity Emerging vs. Fidelity Total International | Fidelity Emerging vs. Fidelity International Value |
| Janus Asia vs. T Rowe Price | Janus Asia vs. Perkins Select Value | Janus Asia vs. Guinness Atkinson Asia | Janus Asia vs. Fidelity Emerging Markets |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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